Asked by
Taylor Korynta
on Dec 17, 2024Verified
Orion Corporation reported net income of $31,000, depreciation expenses of $18,000, an increase in Accounts Payable of $3,000 and a decrease in Accounts Receivable of $2,500. Under the indirect method, net cash flow from operating activities is:
A) $38,300
B) $54,500
C) $23,700
D) $35,300
Depreciation Expenses
The allocated cost of an asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.
Accounts Receivable
Funds that clients or customers owe to a company for products or services delivered on credit.
Accounts Payable
An accounting recording of amounts a company owes to suppliers for goods or services purchased on credit.
- Analyse the repercussion of different financial activities on cash flow from operations with the indirect method.
- Ascertain the net cash inflow from business operations through evaluation of working capital fluctuations.
- Understand how to adjust net income to arrive at net cash provided by operating activities.
Verified Answer
ZB
Learning Objectives
- Analyse the repercussion of different financial activities on cash flow from operations with the indirect method.
- Ascertain the net cash inflow from business operations through evaluation of working capital fluctuations.
- Understand how to adjust net income to arrive at net cash provided by operating activities.
Related questions
Blair Corporation's Accounts Receivable Decreased by $15,000 During the Year ...
The Accounts Receivable Balance Has Decreased During the Year ...
The Net Income Reported on the Income Statement for the ...
Which of the Following Would Be Included in the Net ...
When Preparing the Statement of Cash Flows by the Indirect ...